Commercial property advice

[Greg Grant]

Thinking about buying a 7 unit building in a class C area. I wanted some advice if I should or shouldn’t buy it? Let me break down the deals.

Sale price $125,000 I am thinking of offering $60,000

Rehab $110,000 it need a new roof and it’s a lot a water damage inside and mold because of it but not all the units are damaged.

Rent roll $5,600

Expenses mortgage $1,500

Grass cutting $45

Insurance $125

Cap rate 39.56% that’s what I got when I googled it.

Lookin for some advice this will be my first commercial property.

Sent from my iPhone

[Ned Carey]

@Greg Grant Even if you get the work done in 6 months it will take time to get it fully rented. This is a common mistake; not counting the amount of time it takes for lease up. None the less it looks like you have a very workable deal.